‘Say yes!’ Married couples could slash their tax bill by £1,242 – are you eligible?

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Marriage Allowance allows married couples or those in civil partnerships to share their personal tax allowances. This is the case if one partner earns below the Personal Allowance threshold of £12,570, and the other is a basic rate taxpayer.

It is currently the height of the wedding season, and with new married or civilly partnered lives being forged, there is also the chance to slash taxes.

This is also the case for those who have been married or civilly partnered for many years, so large numbers of Britons may wish to take advantage.

Eligible couples will be able to transfer 10 percent of their tax-free allowance to their partner – worth £1,260 in the current tax year.

Applications can be made at any time, and some will even be eligible for a back payment.

Claims can be backdated for up to four previous tax years if eligible, and thus Marriage Allowance payments could be worth up to £1,242.

The Government suggests the payment could be a significant help for married and civilly partnered couples given the rising cost of living. 

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We want to ensure people are receiving vital financial support at a time when they need it most. 

“Married couples or those in a civil partnership could potentially receive tax relief worth up to £1,242, meaning extra cash in their pockets.

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“To find out if you are eligible and how to apply search ‘marriage allowance’ on GOV.UK.”

At present, there are thought to be more than two million couples across the UK benefitting from Marriage Allowance.

However, thousands more are likely to be eligible to claim, so it is worth looking into.

When couples first get married, they may not be eligible for a number of reasons.

But years down the line, their circumstances may have changed and they could now submit a claim.

This could include:

  • If one partner retires and the other remains in work
  • If there is a change in employment
  • If there is a reduction in working hours meaning earnings fall below Personal Allowance
  • Maternity, paternity or shared parental leave
  • Unpaid leave or a career break
  • One partner studying or in education and not earnings above their personal allowance.

Britons should be aware their claims are automatically renewed each year.

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However, just as a couple can become eligible, they could also fall outside of eligibility due to a circumstantial change.

As a result, couples should always notify HMRC if their circumstances do change.

Marriage Allowance can be claimed online via the Government’s website.

Doing it this way ensures Britons get 100 percent of the money to which they are entitled – without fees.

If an application cannot be made online, then individuals can apply to HMRC in writing, or via their Self Assessment tax return.

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